Tourism continues to drive Indonesia’s economy, but its environmental cost is drawing renewed attention. Bali’s recent floods have reignited debate over sustainability and calls for the hotel sector to take greater responsibility in protecting the environment.

At a coordination meeting of Bali’s hospitality industry, Hanif Faisol Nurofiq, minister of environment and head of the Environmental Control Agency, said: “The hotel sector is not only the driver of the economy, but also the face of the nation in the eyes of the world.”

He warned that tourism growth carries serious consequences for nature, citing the recent floods as a reminder of the impact of land conversion and shrinking green space.

He stated: “This is the time for the hotel industry to take responsibility for maintaining the ecosystem, not just enjoying economic benefits. We must ensure that tourism growth goes hand in hand with environmental sustainability.”

The meeting followed the 2025 Corporate Performance Rating Assessment Programme (PROPER) by the Ministry of Environment, which evaluated companies with significant environmental impact. Of 229 hotels assessed in Bali, none met the criteria for environmentally friendly properties, with some still receiving the Red ranking – the second lowest.

Hanif acknowledged hotels that have adopted energy-saving technology, improved waste management, and constructed green buildings. The government, he said, will continue to support such efforts through training, technical guidance, and policy measures to encourage sustainable practices.

Hotels that consistently apply sustainability principles will qualify for Green Hotel certification and promotional support. The ministry also encourages integrating corporate social responsibility with activities such as tree planting, watershed restoration, and the creation of green spaces. Hanif further recommended green infrastructure like meadows, green roofs, and vegetation walls, which offer ecological benefits while improving hotel surroundings.

“Simple steps such as planting trees, building infiltration wells, or reducing waste, if done together, will have a big impact on tourism sustainability,” he said.

The PROPER findings surprised many in the industry, as several assessed hotels had previously received national and international sustainability awards.

Rizki Handayani, deputy for industry and investment at the Ministry of Tourism, said the results would be discussed with the Ministry of Environment and the Indonesia Hotel and Restaurant Association (IHRA). “It is important for us to examine this closely because this assessment will affect branding,” she said, adding that limited land in urban areas like Jakarta poses challenges for compliance.

IHRA chairman Hariyadi Sukamdani said sustainability had become inseparable from tourism but noted ongoing difficulties.

“Space limitations are a key challenge for the hotel industry; because of limited land, many hotels cannot process waste on site and instead outsource waste management.”

At the Hotel Public Relations Summit, industry leaders said that despite internal sorting, separated waste is often re-mixed by collection services due to the lack of proper waste facilities. Hariyadi added that efforts to reduce carbon emissions also require significant investment, noting that switching from fossil fuels to electric energy remains costly.